SNOW HILL — Several citizens crowded outside the “closet” doorway at a Greene County special-called meeting on Friday.

Some of the citizens commented and asked questions after County Manager Richard Hicks gave a rundown of the history of Phase 1H of the alternative water project and Julia Johnson, community specialist with N.C. Department of Agriculture’s Rural Development, backed the funding for the project.

In mid-February, the county had approved de-obligating a USDA loan for Phase 1G, a project that would have landed the county with a loan of more than $7.58 million. They also reduced the scope of Phase 1H and amended it so the line could hook up with the completed Phase 1F project.

At Monday’s commissioners’ meeting, engineer Van Lewis of McDavid Associates requested the county to purchase two pieces of property for a valve station and chemical feed station for Phase 1H, which caused citizens to question the reasonableness of spending more money.

The total cost for the two portions of property was estimated at $26,362.

Friday’s special meeting finalized the approval of Phase 1H and sealed it with Johnson’s assurance that both the state and federal offices of the USDA were confident in Greene County’s ability to pay the $55,000 contribution and repay the loan portion of nearly $2.79 million.

Local citizens present were not as confident as they expressed concerns about the timing, considering the county’s recent financial instability.

Resident Laura Exum said the county has been “robbing Peter to pay Paul” for some years.

“Even if it’s free money,” she said, “do we have what it’s going to take to back up the back end of it, the part that’s not free to us?”

Snow Hill resident Carolyn Newcomb said citizens didn’t understand why the county was starting a new water project after hearing the de-obligation of Phase 1G had already cost $500,000 in preliminary costs, such as engineering fees.

“I think that’s the part that smarts,” she said, “that citizens didn’t know the whole plan.”

Commissioner Jack Edmondson, who did not vote to approve the project, said he believes the county should spend some money for a second opinion from an engineer.

The Phase 1H project will complete a transmission line from Lodge Hall Road to Crowsfoot in the western part of the county. It will allow the activation of an existing 16-inch line from Maury to Lodge Hall Road.

Newcomb asked if the project must be constructed, considering the county has a state waiver requiring it to use only 25 percent of alternative water, instead of the previously mandated 50 percent.

“You do not have to do anything,” Lewis said. “But you have an opportunity to strengthen the water system and better prepare you to deal with it in the future and to optimize your investsments you already made.”

Page 2 of 2 - That opportunity is nearly $1.27 million through a Farm Bill grant that recently came available and a $3 million Public Water Supply grant toward the $7.2 million project — 52 percent of the total package comes from grants.

Johnson said the USDA program’s mission is to help rural communities.

“That’s what we feel like we can offer to Greene County,” she said about the loan/grant. “That’s what we presented. We want to do that for Greene County.”

The waiver is limited to 5 years, and there is no guarantee the alternative water use requirement will stay at 25 percent, increase or be done away with altogether.

“This system gives you the capability to move water all across the county,” Hicks said.

Lewis said the water project will never be completed, due to growth.

Commissioner Bennie Heath said the water system goes back about 30 years.

“Recognize, this water system has been built over a period of time,” he said, “and by and large, it was built, basically, on how much money you had to build.”

A county commissioner candidate, Jim Davenport, asked if the repayment would come out of the water fund.

Hicks said it would be paid by the monthly $12 customer surcharge.

“If you continue the surcharge the way it is,” Lewis said, “you will be able to pay the loan off before it matures. ... So the surcharge of $12 is adequate to handle all the debt service associated with the alternative water supply.”

Davenport asked if the surcharge would cover emergencies without having to be raised.

Edmondson said it would if the number of customers did not drop.

“What’s to keep Maury from pulling out?” he asked. “Since I live in Maury, what’s to keep us from pulling out?”

Edmondson said they could repair their wells.

Lewis said he doubted Maury, a Greene County water customer, would spend the money for the repairs.

When Newcomb asked about losses of water from flushing, Hicks said the county only uses the alternative water for about three months of the year.

Greene County Public Works Director David Jones said the county flushes the system in the winter when the water loss is less than it would be in the hot months.

Greene County resident Robert “Bob” Masters said the county is in a “dilemma.”

“Under normal financial circumstances,” he said, “I would personally say, jump all over this money. But man, you know, it’s not going to get no better. But we’re not in a normal situation, folks.”

Margaret Fisher can be reached at 252-559-1082 or Margaret.Fisher@Kinston.com. Follow her on Twitter @MargaretFishr.